Daily Trending News and Market Sentiment: Bitcoin “Non-Sovereign Power” in Cuba, Breakout Signals?

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After yesterday’s strong showing throughout most of the global timezone, Friday the 13th threatened to bring some blood into the market in North America, but beyond a brief lapse into a low of USD 10,167 at the late afternoon hours of Friday there, 8:15 pm GMT(CoinDesk), price somehow found a way to strengthen again, pushing forth into a daily high of USD 10,384 just hours later, where it continues to trade still on a quiet Saturday.

If the news of dovish central banks has not been enough to dampen spirits for traditional bankers, then one wonders what they will make out of what is happening in many Central and South American countries, where the nationally backed fiat currencies are spiraling into a vicious cycle of hyperinflation.

Venezuela has been in an ironic saga of trying to stamp out the use of Bitcoin and crypto while issuing its own sovereign blockchain-based currency. But now, the first Bitcoin ATM has already surfaced there, if data by Coin ATM radar is to be believed. The machine was installed by Panda BTM, and sits in a convenience store called Viajes e Inversiones HC.

While Venezuela has long been in the headlines since at least last year, especially with their Petro cryptocurrency riddled with scandal and mismanagement, Argentina’s recent decision to enforce tighter capital controls is now being copied by Cuba.

The reasons look to be the same in both the Latin American nations. Argentinians, sick of their peso losing value every day, had sought out other more stable currencies. And when their president limited their daily US dollar purchase to USD 10,000, they went for something the state couldn’t monitor or control and had equal recognition as a store of value: Bitcoin.

Apparently, the same has been happening in Cuba, with Decrypt reporting that Cubans are also looking towards Bitcoin and other cryptocurrencies to circumvent the limits of their access to conventional banking and finance.

In one of the last communist states in the world, all this is happening due to a convergence of factors, reports US News. Mobile internet is becoming cheaper and more widespread and is a real way for Cubans to get past the restrictive US sanctions that have been pressing on them for more than 50 years now. One Jason Sanchez in particular credits Bitcoin’s “non-sovereign power” in helping salvage his mobile phone repair business, “opening new doors” when it helped him buy spare parts on the Internet with the cryptocurrency.

Mobile messaging apps like Telegram are also popular with Cubans, as they turn to their diaspora abroad to help them access the services and products they wouldn’t normally be able to. Alex Sobrino, the founder of CubaCripto, which is a Telegram group facilitating peer-to-peer trading, estimates that crypto is now the utility currency of some10,000 Cubans:

“We are using cryptocurrencies to top up our cellphones, to make purchases online, and there are even people reserving hotel rooms.”

All this is now coming to light, that Bitcoin is helping people lead normal lives, far beyond the initial expectations of what Bitcoin could do for digital money and its usage. This, more so than larger macroeconomic effects that commentators say will drive the price of Bitcoin to new highs, is the more urgent and more current activity that has practical consequences for regular people. And if normal citizens can see the use of Bitcoin in storing value, sending value and they realize it cannot be controlled by their governments, then perhaps Bitcoin has a strong future that we cannot see beyond its current price valuations.

Back to general sentiment, we now see Bitcoin still within a rather big pattern of trading sideways for the last few months, but bear or bull, everyone is now counting on a large breakout to happen. The descending triangle we spoke about recently could still very well happen, in which case we should see Bitcoin stumble in large double-digit percentages. But the other possible one is also the symmetrical triangle characterized by two converging trend lines connected by a long a series of peaks and troughs.

The last time this happened in March, Bitcoin marched forth almost in unstoppable fashion, almost recording USD 14,000 in June 2019. Thereafter, monthly highs have been USD 13,000, USD 12,000 and USD 11,000.

Worrying perhaps, but we should now point out that we have been seeing higher lows as well in the past months, so we see this as a huge sign of confidence from buyers willing to ride the cycles before the breakouts.

Will we be wrong? It matters not, as sentiment is always shifting enough for us to analyze.

 

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